Nationwide buy-to-let specialist, Sequre Property Funding, has revealed that whereas an inside metropolis rental property nonetheless instructions a better month-to-month rental revenue, rental properties in outer metropolis areas have seen stronger progress during the last 12 months.
Sequre Property Funding analysed rental market information for London, Manchester and Birmingham and the way it differed when evaluating inside and outer metropolis areas.
The figures present that inside metropolis rental markets appeal to the strongest ranges of month-to-month hire. On common throughout all three cities, the month-to-month value of renting inside an inside metropolis space sits at £1,152 versus £908 per 30 days within the outer metropolis market – a distinction of 27% or £244 per 30 days.
London is dwelling to the most important distinction, with rents throughout the inside metropolis rental market coming in 37% larger on common, with a 26% distinction in Manchester and only a 9% distinction in Birmingham.
Nevertheless, on the subject of annual rental progress, the outer market throughout every metropolis has fared much better than the inside metropolis rental market.
On common throughout all three cities, annual rental progress throughout outer metropolis areas has remained largely flat, whereas throughout inside metropolis rental areas it has fallen by -4.4% within the final 12 months.
Manchester has seen the strongest efficiency, with inside metropolis rental values remaining largely unchanged within the final 12 months whereas throughout town’s outer rental market, values have climbed by 3.7%.
In Birmingham, outer metropolis rental values are up 2.2% versus a marginal 0.3% uplift throughout the inside metropolis.
London’s rental market has struggled throughout the board, with only a 1.1% enhance in rental values throughout outer metropolis areas and a notable -7.8% drop throughout the capital’s inside metropolis areas.
Gross sales Director at Sequre Property Funding, Daniel Jackson, commented: “It’s clear inside metropolis rental markets are nonetheless struggling because of the decline in demand attributable to the pandemic, regardless of a gradual return to normality from a social standpoint and with regard to the office.
That is significantly evident throughout the London market, the place rental values have plummeted throughout inside metropolis areas, whereas they’ve additionally struggled in outer metropolis areas.
The excellent news is that elsewhere, outer metropolis rental values are on the up, with each Manchester and Birmingham seeing very wholesome ranges of progress. This implies that tenants are actually beginning to make their return and this can be a pattern that ought to quickly attain our metropolis centres and assist increase values throughout inside metropolis rental markets.”
